S&P rates Starz notes BB

Standard & Poor's said it assigned a BB corporate credit rating to Starz LLC, along with a BB rating on its proposed $500 million senior unsecured notes due 2019, which are co-issued with Starz Finance Corp.

The notes have a recovery rating of 4, indicating 30% to 50% expected recovery in a default.

The proceeds will be used to repay the outstanding balance on its term loan.

The outlook is stable.

The ratings incorporate an assumption of moderate revenue growth over the next several years, resulting from subscriber growth and modest price increases, S&P said.

The agency said the Starz's business risk profile is fair because of the broad carriage of its cable networks by cable, telecom and direct broadcast satellite TV providers, along with a track record of stable subscriber trends.

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